just converted from sole proprietor to s corp. but am having trouble determining reasonable salary. I run online sales business (sell retail merchandise). I have been doing this 15 years and my salary has ranged from 20K to 50K.
there are very little skills and knowledge required to do what I do. I do need some computer skills and I also need access to credit (capital) to acquire inventory and do need a car for transportation.
any idea on how much I can take as a distribution per year? I anticipate my income going up in the coming years so I have switch to s corp to hopefully limit my self employment taxes.
salary of sales jobs can very significantly. the BLS web site shows avg salary for retail sales person to be 29K yr. should I pick 29K as the salary? or are other factors at play?
thanks
